An Introduction to Fraser
Lake Ltd, Property Management Services
Fraser Lake Ltd formerly Gorham & Co Property
Management have been managing private residential properties since 1989. It now has a substantial and diverse
portfolio.
We provide a specialist residential property
management service designed to meet the needs of property owners and landlords.
Amongst the services provided are:
Tenant finding, Tenancy arrangements, rent
collection using the latest computer programmes, eviction notices and the
co-ordination of court proceedings, help line for maintenance and gas appliance
checking services. We also provide a
management service for Property portfolios and privately owned Apartment
blocks.
This comprehensive property management service gives
the landlord peace of mind in knowing that their rights are being protected and
their obligations exercised in the most efficient and pro-active way.
We have experience in dealing with most of the North
East local authorities. Our rates are highly competitive and are calculated and
payable only on rent actually collected.
In late 1995 RR Estates joined Gorham & Co, thus
expanding the property portfolio and providing them with the benefits of a wide
range of managed properties from a shopping parade in Leicester to blocks of
flats in Whitley Bay, including 1 bedroom flats to 6 bed detached properties
both furnished and unfurnished.
We are founder members of Gateshead Private
Landlord’s Association and also Derwentside Private Landlord Association.
1. OUR SERVICE TO YOU
We offer a specialist residential property
management service to property owners throughout the area. We have close contact with most of the major employers in the area, being able
to organise either a corporate or private let for your property.
We specialise in the following:
2. PRIVATE LANDLORDS
You may be a private landlord with one or several
properties to let, either furnished or unfurnished. You may find, for various reasons, the problems of managing your
properties either too cumbersome or too much responsibility. You may find also you do not wish to deal
with your tenants on a personal basis, having experienced tenants ringing up at
all hours with an urgent repair and the subsequent organising of Tradesmen to
carry out the repairs. In this instance
we will be there to carry the burden for you with our full or partial
management service.
3. HOME OWNERS WORKING ABROAD
If you are required to work abroad or in another
part of the country, letting your home can be a worry. We can organise a full management service of
your property, organising the daily management of the property i.e. repairs,
paying necessary bills, tax etc. and general maintenance and upkeep of your
property, leaving you worry-free.
NOTE: See section 14.
4. MORTGAGES
Where the property to be let is subject to a
mortgage, you normally need permission from the mortgagees’ to let the
property. You must obtain your
mortgagees’ permission (if required) at the earliest date rather than applying
for this when a tenant is found.
5. SERVICES
The services included in our fees are:
a) Taking up references - we give no warranty as to
the suitability of a prospective tenant.
b) Preparation and submission of rent statement.
c) Collecting and holding of the deposit payable by
tenants against dilapidation’s.
d) Notification to utilities i.e. gas electric,
water, electric, community charge, telephone and housing benefit (where
applicable) at commencement of letting.
e) Property inspections, initial, at three months
and then at six months.
6. RENT
Unless otherwise agreed the rent quoted to a tenant
on your behalf will be inclusive of all outgoings for which you are
responsible. (i.e. ground rent, service
charges etc.) With the exception of
gas, electricity, telephone and fuel oil where there is independent oil fired
heating system, water rates and council tax.
7. INVENTORIES
An inventory check in and check out of the contents
and a schedule of condition will be provided. This document remains the
property of Fraser Lake Ltd. at all times.
We can however, if required, instruct independent firms to act on your
behalf on the basis that you have responsibility for their charges. While care will be taken in giving
instructions to inventory clerks, we cannot accept liability for any error or
omission on their or our part.
8. TENANCY AGREEMENTS
Unless we are instructed otherwise, we use our own
specific tenancy agreement.
9. RENT REMITTANCE
To be paid to Landlord the following month allowing
cheques to be cleared and statements to be prepared. Monies can be paid direct into clients’ accounts. A statement will be prepared every month,
showing our commission deducted at the agreed rate and any further charges for
maintenance etc. Payments are credited monthly direct to landlord’s bank or
building society.
9B. BOND (DILAPIDATION DEPOSIT)
THE DEPOSIT (Full Management)
9.1 Except where otherwise provided in writing, Fraser Lake Limited shall hold the deposit in accordance with the provisions of the Tenancy Deposit Schemes as set out in the Housing Act 2004. Such deposit shall be the equivalent of a calendar month’s rent unless otherwise agreed. Fraser Lake Limited will within fourteen days of the signing of the Tenancy Agreement (or such other period as shall be prescribed by legislation) subscribe to one of the designated Tenancy Deposit Schemes and within such period shall provide to the Landlord and to the Landlord's tenant full details of the scheme including such other information as may be reasonably required.
9.2 After the determination of the Tenancy the Landlord shall use his best endeavours to agree with his tenant what deductions should be made from the deposit and will in any event within twenty days of the termination of the Tenancy notify Fraser Lake Limited of what sums/issues remain in dispute.
9.3 Fraser Lake Limited will, as soon as reasonably practicable after such notification, refer the dispute to the Administrator of the Tenancy Deposit Scheme subscribed to who will then determine matters in accordance with the provisions of that scheme. The Landlord agrees to provide such co-operation as is reasonably required to assist in such a referral and the determination of any dispute. This obligation does not in any way limit the Landlord’s right to make an application to the County Court where appropriate.
9.4 Except with the consent of the Landlord’s tenant or where there has been a determination made by the relevant Tenancy Deposit Scheme or by a Court of Law, the Landlord accepts that notwithstanding the terms of his Tenancy Agreement, no deductions will be made from the deposit and that he will not be entitled to claim interest thereon.
THE DEPOSIT (Tenant Find only)
9.4.1 The Landlord will be ultimately responsible for protecting the deposit. Fraser Lake Limited will pass the deposit to the Landlord upon receipt. The Landlord is required to protect it by depositing it with the DPS within 14 days of the deposit having been received by Fraser Lake Limited, NOT by the Landlord.
Upon signing the agreement the Landlord agrees to
provide proof that they are registered with a scheme. In the event that proof
has not been provided to Fraser Lake Limited within 5 days of receipt of the
deposit, the deposit will be placed into the custodial scheme (DPS).
Normally one month’s rent is taken as a deposit, as
security for the performance of the tenant’s obligations and any dilapidations
incurred. Deposit is held by us as
stakeholders in our client account and returned on satisfactory final
inspection of property by ourselves.
Note: Bond moneys held are
protection against dilapidation and as such should not be accepted in whole or
part payment in rent arrears, often suggested by tenant during final month of
tenancy.
10. INSURANCE
You should make certain that your building and its
contents are adequately insured and that your policy covers furnished
lettings. Most household policies do
not. Specific Buildings and contents insurance for furnished letting properties
are available.
11. PAYMENT
OF BILLS
With the authorisation of client and being
sufficient funds available, we can
arrange payment of all necessary bills, e.g. utilities, maintenance etc.
12. MAINTENANCE
We have our own property maintenance department,
which can handle most day-to-day repairs.
In the event of an emergency whereby the owner cannot be contacted
immediately, we will carry out emergency repairs up to £200. Any further repairs will only be carried out
with the permission of the landlord
13. CONTACT
Whenever possible tenants shall not come into direct
contact with the landlord. All queries
to be made through ourselves.
14. LANDLORDS WORKING ABROAD (IMPORTANT
NOTICE)
Under Section 78 of The Income Tax Management Act
1970, we are deemed as managing agents by law to be responsible for the paying
of tax on net rental income (i.e. after
commission, maintenance and general bills have been deducted) on behalf of landlords
living abroad. 24% of net rental income will be deducted and held in a
landlord’s personal tax deposit account to cover any tax liability, see 19b.
15. FURNISHED/REFURBISHMENT
We can under certain circumstances, deal with
partial or total refurnishing/
refurbishment of properties. If we undertake to supervise this work a fee
of 10% plus vat of the total cost of the work will be charged by us.
16. INSPECTION AND DEFECTS
Our management will include investigation of defects
which come to our notice or are clearly and adequately brought to our attention
by the tenant. We shall inspect the
property on a six monthly basis (or as discussed with you). It should be appreciated that any such
inspection can extend only to apparent and obvious defects and would not amount
in any way to a survey of the property.
We cannot accept responsibility for latent defects.
17. TENANCY CHANGES
In the event of there being a tenancy change during
our management we will deal with the preparation of the property for the new
tenant, subject to being in funds to do so.
18. TERMS OF MANAGEMENT APPOINTMENT
Except in cases when you intend to re-occupy the
accommodation and where special arrangements are made, our appointment is for
an agreed initial period i.e. Length of shorthold tenancy agreement and
thereafter subject to six months notice to terminate on either side. We expect to be placed in sufficient funds
at the commencement and, if necessary, during the term of the management, to
enable us to meet all expenditure prior to the next rent collection. It is essential that we hold a working
balance, as we cannot undertake to meet any outgoings beyond the available cash
from time to time in our hands on your account. This will be reviewed in line
with the Housing Act changes due to come in to force in April 2007.
The landlord agrees that he appoints us his agent in
connection with the agent’s functions under this Agreement and the Tenancy
Agreement to be entered into and authorise us (without any obligation to do so)
to enter the premises and to take all reasonable steps with regard to our
appointment as Agents.
19. VOID PERIODS
Our management does not include
the supervision of the property when it is not let, although, in the normal
course of letting, periodic visits may be made to the accommodation by our
lettings staff. It does not include any
period before the property is let. If
you wish the property to be managed during a void period there will be an
additional charge of £7 per one weekly visit.
GENERAL
REMARKS
a) INSTRUCTIONS TO SOLICITORS
You will be informed of any
significant rent arrears or breeches of the tenancy agreement brought to our
attention. However, if it is necessary
for a solicitor to take action, you will be responsible for instructing your
own lawyer and for all fees involved. (See section 27)
b) TAXES
MANAGEMENT ACT (OWNERS ABROAD)
Where the landlord of the
property resides abroad the Commissioners for Inland Revenue will hold us, as
your agents, responsible for the payment of the tax liability which arises on
rents collected by us on your behalf.
Accordingly, if you are resident abroad, it will be necessary for us to
deduct the tax at the basic rate and hold the amount so deducted to your credit
until the taxation liability has been agreed with the Inspector of Taxes. Similarly, if you live at present within the
UK but subsequently move abroad, it will be necessary for us to commence this
deduction from the time you leave this Country. The monies deducted will be placed on deposit and will earn
interest on your behalf.
The eventual liability for tax
may be considerably less than the amount we have retained and we suggest you
employ accountants or other tax advisers to agree your assessment each year
with the inspector of taxes. When this
has been settled, we are then in a position to account to you any surplus we
have deducted for that tax year.
We regret the necessity to make
such deductions but you will appreciate that we have no alternative in view
responsibility to meet the tax liability on your behalf. We therefore ask you to let us know as soon
as possible, who will be dealing with your tax affairs in this Country. Should you at present reside in the UK but
subsequently move abroad, we ask that you let us know the name of your
accountant or tax advisers at that time.
20. HOUSING ACT
Applications for market rent or
appearances before the Rent Assessment Committee or any other Court or Tribunal
will be by special arrangement only and will form the subject of an additional
charge.
21. PURCHASE BY PARTY INTRODUCED BY US
In the event of a party
introduced by us (or any person or body corporate associated with that party)
subsequently purchasing the premises, whether before or after entering into a
tenancy agreement, commission shall be payable to us on completion of the sale
at a rate of 1% + plus vat of the sale price with a minimum fee of £700. (Seven Hundred Pounds). Vat is additional
at the standard rate.
22. INDEMNITIES
The landlord agrees to indemnify
us as agents against any costs, expenses or liabilities incurred or imposed on
us provided that they were incurred on his behalf in pursuit of our normal
duties.
24. VALUE ADDED TAX
Except where otherwise stated,
our fees and any other charges we make will be subject to V A T.
IMPORTANT
NOTICE!
FURNITURE & FURNISHINGS (FIRE SAFETY
AMENDMENT) REGULATIONS 1993
1st March 1993 saw the
introduction of the Furniture & Fittings (Fire and Safety Amendment) to
furnished lettings. The regulations
require that upholstered furniture supplied in a furnished let must meet all the
fire resistance requirements of the regulations.
Whilst the regulations are fairly
complex, they essentially make it an offence to “supply in the course of
business” any furniture which has not passed specific tests. The tests specified are what are known as
the “cigarette test”, the “match test” and an “ignitability test”. They were first introduced in the Fire and
Furnishings (Fire and Safety) Regulations of 1988. The supply of furnishings “in the course of business” which does
not meet with the above requirements constitutes an offence under the Consumer
Protection Act 1987 Section 12 (1).
Conviction of an offence under the above regulations carries both the
punishment of a fine of £5,000, 6 months imprisonment, or both.
In brief, the regulations require
that upholstered furniture, head boards, mattresses, bed bases and soft
furnishings included in a furnished letting must have a fire resistant filling
material, the cover fabric must have passed a match resistance test, and the
combination of the cover fabric and the filling must have passed a cigarette
resistance test. There are some
exclusions. Furniture manufactured
before 1st January 1950 has been determined not to have been made with
defective materials and is, therefore, exempt.
Antique and Period furniture, therefore, be excluded from the
regulations. There is too, some leeway
to properties, which were let furnished prior to 1.3.93. A transitional period has been allowed
whereby lettings made before or, continued after that date, have until
31.12.96. to comply with the
regulation. Any replacement furnishing purchased during this transitional
period must comply. After this date
effectively from 1.1.97. all furnishings, subject to the regulations, included
in a let must comply. The regulations
apply NOW to all new lets made since
1.3.93. since 1990 all upholstered furniture sold in retail outlets has to
comply with the regulations and in order to show compliance, such upholstered
furniture carries a permanent label stating the tests to which the materials
have been subjected.
25. FIRE SAFETY
As an added safety precaution and
to help to protect the landlord’s investment we insist that smoke alarms are
fitted, these can be installed by the landlord or supplied and installed by
ourselves at a small cost.
Make sure all GAS appliances are working correctly, particularly
check gas fires, and make sure ovens are in good working order i.e. check
elements, doors of oven operate correctly etc.
Please supply all necessary
operating instructions in writing for all gas appliances, Central Heating
systems etc. and any information you believe would be helpful to new tenants. Do not leave any item in the
property that is not in good working order otherwise they will have to be
repaired or replaced.
26. GAS SAFETY (INSTALLATIONS AND USE) REGULATIONS
1994
The above act states that all gas
appliances must be: SERVICED and
CHECKED for SAFETY, at least on an annual basis, by a Corgi registered
engineer. This can be arranged through ourselves. When gas does not burn
properly, excess carbon monoxide is produced. You can’t see it. You can’t taste
it. You can’t even smell it. But carbon monoxide can kill within hours. Any
landlord breaching the above regulations will be guilty of the offence under
Section 36 (1) of the Health & Safety at work Act 1974 and legal
proceedings will be taken against them. We as responsible managing agents shall
automatically ensure above regulations are upheld and shall do so on your
behalf. If landlords use their own Corgi registered engineer he must provide a
valid CP12 Gas Safety Certificate and ensure that a copy is provided to the
tenant, in confirmation that the gas appliances have been: SERVICED& CHECKED for
SAFETY ANNUALLY
IMPORTANT
27/ DSS
/ HOUSING BENEFIT RENT
In the event of the tenant being in
receipt of the above, the landlord agrees to refund any overpayments and/or
clawbacks from the Housing Benefit office paid to the landlord by Fraser Lake
Ltd. acting as management agents on the behalf of the landlord.
27b/ RE-DIRECT MAIL
Landlords are advised to arrange
to have their mail re-directed. Forms are available at any Post Office. Neither
tenants nor ourselves can be held responsible for loss of mail.
28/ REPAIRS
For general repairs we have our own maintenance dept. If a
specialist tradesman is required, we have various tradesmen we can call upon.
All emergency repairs will be carried out immediately, any repairs over £200.00
will have to be authorised by landlord before commencing.
If you have your own tradesmen to call upon please complete
below:
NAME ADDRESS TEL No.
PLUMBER:
ELECTRICIAN:
JOINER:
DECORATOR:
BUILDER:
HANDYMAN:
FEES
On our finding a tenant who is acceptable to you or whom you have given us authority to accept on your behalf and who completes the tenancy agreement, our commission will be charged as follows:
1)Full management.
To advertise the property, take up references etc draw up tenancy agreement on each and every new tenancy our agreed fees will be 50%* of the first months rent e.g Rent £450 pcm fee £225.
The management of the property will be charged at 10%* of the monthly rent with a minimum charge of £32.50 per month.
To advertise the property, take up references etc draw up tenancy agreement on each and every new tenancy our agreed fees will be 75%* of the first months rent e.g Rent £450 pcm fee £337.50
* All fees will be subject to VAT.
DESCRIPTION
1. FULL
MANAGEMENT
a) Advertising
Property
b) Accompanied
viewings
c) Selecting
tenant
d) Taking up
references
e) Credit checks
f) Drawing up
Tenancy Agreement
g) Informing
utilities
h) Collecting
deposit and rent
i) Inventory
check in/out
j) Organising
repairs/maintenance
k) Tax affairs
l) Payment into
bank account, organising tax bank account
m) Arrange CP12 Gas Safety check
2. MANAGEMENT
(Tenant Find)
a) Advertising
Property
b) Accompanied
viewings
c) Selecting
tenants
d) Taking up references
e) Credit checks
f) Drawing up
Tenancy Agreements
g) Informing
utilities
h) Collecting rent
and deposit
i) Inventory
check in
3. RENT
COLLECTION ONLY (Fees negotiable)
Whereby landlord’s existing tenant pays rent into the office
on a weekly/monthly basis, money paid into landlord’s rent account. No other service provided.
ADDITIONAL
CHARGES (Excluding VAT)
a) Drawing up
Tenancy Agreement £50.00
b) Inventory
check in inventory check out. £50.00
The total amount of commission due to us is payable upon
receipt of
rental
income from tenant.